Philippines to cut corporate tax to 25% to aid recovery from COVID

Congress passes bill after data show economy contracts the most in region

20210203 Philippines Manila tall buildings

The Philippine government hopes to help businesses suffering from pandemic effects by cutting corporate income tax. © Reuters

CLIFF VENZON, Nikkei staff writer

MANILA -- The Philippines is poised to cut income tax levied on companies under a proposed law that businesses have banked on to help them recover from the pandemic.

The House of Representatives on Wednesday ratified the final version of the proposed Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE, which reduces the income tax rate to 25% for big companies and 20% for smaller enterprises from 30%, the highest among countries in Southeast Asia.

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